Mint Explainer: What are the government's borrowing plans for FY24?
₹17.99 trillion from various sources. This figure represents about 40% of the total net size of the Union Budget for that year, which amounts to ₹45.03 trillion.
During FY 24, the government plans to raise ₹11.81 trillion from market loans (dated securities), ₹ 0.50 trillion from T-Bills (Treasury Bills), ₹0.22 trillion from external loans, ₹4.71 trillion from securities issued against small savings, ₹ 0.20 trillion from state provident fund, ₹0.54 trillion from other receipts that include internal debt and public account. While responding to a question in the Rajya Sabha, finance minister Nirmala Sitharaman recently said the government has mobilised gross and net amount of ₹ 5.77 trillion and ₹ 4.18 trillion, respectively, by issuing dated securities in the current financial year up to 31 July, 2023.
The government's budget deficit increased from 21.2% to ₹4.51 trillion, or 25.3% of annual estimates, in the first quarter of FY24. This was primarily brought on by a substantial rise in capital spending and an acceleration of the tax devolution to state governments, which partially offset the rise in non-tax revenue.
However, there are also encouraging signals, like strong capex, reduced revenue spending, and brisk tax revenues. According to government estimates, the fiscal deficit in FY 2023-24 is pegged at ₹ 17.87 trillion.
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